Project Inefficiency is a situation in which it is possible to generate a greater amount of project effect or outcome from available resources allocated to the project. It characterizes imbalance between desired outcome and actual outcome in terms of resource consumption.
A project becomes inefficient when it fails to follow Pareto Principle. As appears from this Principle, an inefficient project is a project in which the actual results could be better because they do not meet preset expectations and needs. Hence, the project fails to utilize available resources in the way that ensures more efficient results.
Meanwhile, project inefficiency does not mean project failure. Even an inefficient project can be successful. Such a project meets goals and objectives and thereby reaches success but still remains inefficient because desired results (deliverables) are not produced. In this content, project inefficiency relates to deliverables but not to goals and objectives.
Status and acceptability of project deliverables are two major parameters that are linked to project inefficiency. If deliverables of some project are produced according to user specifications, acceptance criteria, and resource requirements (time, cost, technology, others), then this project can be regarded as efficient. In case at least one of the conditions is not met, the project turns to be inefficient.